On the Dash:

• Afeela EV program halted after Honda flags up to 2.5 trillion yen ($15.7 billion) writedown.
• Afeela 1, priced from $89,900, will not launch despite planned deliveries to California this year.
• Customers who placed reservations will receive full refunds as JV reassesses future plans.

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Sony Honda Mobility said Wednesday it will stop developing its Afeela electric vehicles, citing Honda’s reassessment of its EV strategy and the lack of a viable path to market for the models.

The decision follows Honda’s broader overhaul of its electric vehicle business, for which the automaker earlier this month flagged a writedown of as much as 2.5 trillion yen ($15.7 billion).

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The joint venture said it will issue full refunds to customers who made reservations for its first model, the Afeela 1, in California. The vehicle had been expected to begin deliveries later this year, with a starting price of $89,900.

Sony Honda Mobility had also planned a second model based on a newer prototype as early as 2028. The company began taking orders for the Afeela 1 last year.

Honda said the impact of the decision on its revised full-year consolidated financial forecasts for the fiscal year ending this month is expected to be immaterial. Sony also said it does not expect the discontinuation to have a material impact on its financial position.

The joint venture was established to combine Honda’s vehicle engineering and manufacturing capabilities with Sony’s software and gaming expertise in an effort to compete with electric vehicle rivals. However, Sony Honda Mobility said it will continue discussions with both companies regarding future plans.